Designing a modern supply chain and eliminating black swan events
Nine questions to find the Gap
Can you (or your delegate) answer most questions/statements with a strong 'yes'?
Did our company avoid production outages or revenue losses due to global incidents such as CoVID-19, US hurricanes, and Asian or European floods in the last ten years?
Does our company have a ‘local sourcing’ metric to ensure that we source locally and adapt to global challenges?
Have we conducted an analysis of neuralgic components at the tier 2 supply chain level (suppliers of our suppliers), and have we established dual or triple-sourcing alternatives as a contingency?
Do we execute buy vs make strategies in smaller/growth markets to stay flexible, reducing the haul of finished goods over long distances?
Is our procurement organization equipped with the necessary tools and resources to identify opportunities for reducing greenhouse gas emissions and other sustainability factors Are their targets for reduction or optimization shared in sustainability reports?
Do we have standards for assessing sourcing risks in "hot zones," such as areas prone to earthquakes, hurricanes, and epidemics, and do we carefully assess supply alternatives in these areas?
Is our senior management local but trained globally and vice versa?
Do we regularly conduct mitigation scenarios for risks seen over the last decade?
Is our manufacturing and sourcing set-up able to naturally hedge against currency fluctuations?